By IANS,
New Delhi : In order to meet the increasing demand for railway coaches, the union cabinet Thursday approved setting up of a new unit for manufacturing the state-of-the-art aluminium coaches at Palakkad in Kerala.
“The plant will help railways ensure timely availability of passenger coaches to meet the increasing demands of transportation. It will ensure induction of state-of-the-art aluminium coaches on Indian Railways,” said an official.
The new facility will manufacture 400 coaches per year at an estimated cost of Rs.550 crore (excluding the cost of land).
The project will be a joint venture in which the railways will have 26 percent equity.
The railways will purchase about 239 acres land available with the Kerala government for the plant, said officials.
Work on the project will commence during next financial year 2012-13 and is expected to be completed within three years.